Top 10 3PL Companies In Australia

Managing efficient fulfilment can quickly become a logistical hurdle, which then hinders your ability to scale your Australian e-commerce business and deliver exceptional customer experiences. This is where 3PL (Third-Party Logistics) providers come into play, helping with your e-commerce operations and delighting customers.

However, with a multitude of 3PL companies in Australia, selecting the right partner can feel overwhelming. 

This listicle comprises a list of third party fulfilment companies and  is your one-stop guide to choosing the perfect 3PL provider for your Australian business. Let’s dive in!

Overview of the Australian 3PL Industry

3PL providers act as an extension of your business, handling storage, picking, packing, and shipping of your products from the warehouses to your customers. This allows you to focus on core activities like marketing and product development while ensuring a seamless customer experience.

Australian 3PL providers understand the domestic e-commerce landscape and integrate seamlessly with popular e-commerce platforms like:

• Shopify
• WooCommerce, and
• eBay Australia
• Amazon Australia

Apart from multichannel selling, real estate and labour costs are a major consideration for e-commerce businesses.  

The average warehousing rate in Australia can vary depending on location and size, but generally falls within a range of $100 to $200 per square metre annually.  Strategic 3PL providers offer strategically located warehouses near major population centres, minimising shipping times and costs for your customers.

Australian Customer Expectations From A 3PL Provider

Australian online shoppers have come to expect fast and reliable delivery. Here’s how 3PLs meet these expectations:

• Fast Fulfilment: As online shopping becomes increasingly popular, customers expect their orders to be delivered quickly to their doorsteps. A 3PL provider can be a crucial player in ensuring that the orders are delivered on time. Moreover, several 3PL providers offer fast fulfilment options for marketplaces such as Shopify, which further leads to increased customer satisfaction. 
• International Shipping: 3PL providers like DHL offer the option of international shipping. This allows Australian e-commerce businesses to ship orders to customers outside Australia. Additionally, customers expect efficient and cost-effective options for international deliveries, alongside clear communication on customs processes and potential delays.

Why Hire a 3PL Fulfilment Service Provider for your Australian E-commerce Business?

Successful Australian e-commerce relies on a seamless fulfilment process. However, handling shipping, picking, and warehousing may become a complicated maze. This is where 3PL fulfilment providers come into play.  

They can help you take advantage of economies of scale to save money on shipping and warehouse costs, adjust your fulfilment requirements as your business grows and guarantee quick delivery across the nation with strategically placed warehouses. They also streamline your fulfilment procedures with their knowledge and technology. 

Top 10 3PL companies in Australia

1. Locad

Emerging as the top logistics engine for e-commerce brands, Locad has captured the 3PL market in Australia with their efficient fulfilment and tech-integrated logistics. Locad takes over picking, packing and shopping of your e-commerce business and allows you to track your products. Along with international warehouses that make cross-border expansion seamless, Locads local carriers help them gain the advantage of knowing the local market. 

Beyond fulfilment, Locads Order Management System (OMS) allows you to focus on tech-first fulfilment. This also provides a singular view to manage inventory and warehousing, which in turn helps reduce manual effort. 

Additionally, for a clearer end-to-end visibility, Locad OMS now allows sellers to toggle email notifications for sending tracking information to their end customers. 

Previously, brands with online stores across e-commerce platforms like Shopify and  eBay, etc.) had to toggle between each marketplace’s OMS view in order to check inventory, sales volume and last mile status. Merchants can now view every marketplace within a single OMS with Locads Order Management System.

Locad also provides several inventory and SLA or Service Level Agreement reports, for merchants to gain an overview of the reporting modules that are necessary for their e-commerce business.

Locad’s Services include:

– Same Day Delivery/Fulfilment 

– Locked stock handling

– Inventory Forecast

– Multichannel selling

– Cross-border selling

– B2B Order Workflow

2. Shipwire

Shipwire is a CEVA logistics company that uses advanced technology to ensure your order management runs seamlessly and allows you to focus on other aspects of your business. Shipwire helps fulfil orders for several e-commerce business channels from direct-to-consumer, retail and dropship. Their cloud-based inventory management platform helps integrate your business with technology and helps with customisable reporting. 

What Customers Say:

– Good shipping tool

– Proactive customer support

– Delayed Shipping 

– Limitations with inventory transportation

– Inaccurate stock counting

– Expensive 

3. Pendulum Logistics

Pendulum Logistics is an Australian 3PL that offers effective warehousing, order fulfilment, and nationwide distribution services to e-commerce companies. In order to guarantee prompt deliveries and reduce shipping expenses, Pendulum makes use of cutting-edge technologies and well placed warehouses. Additionally, Pendulum provides value-added services like kitting and returns processing to improve customer satisfaction and expedite fulfilment processes.

What Customers Say:

– Fast delivery times

– Cost-effective 

– Limited VAS

– No real-time inventory visibility 

– No custom packaging

4. Toll Group

Toll group is a 3PL fulfilment provider in Australia, offering a variety of services to ensure all the needs of your e-commerce business are met. With a strong hold on sustainability, Toll Group ensures to practise eco-friendly fulfilment by using fuel-efficient vehicles and eco-friendly packaging materials.

Additionally, with their Supply Chain Control Tower, you can monitor and address disturbances in real time, ensuring that your business operates smoothly.

What Customers Say:

– Good customer service

– Unreliable delivery

– No delivery updates

– Inaccurate tracking

– Longer delivery times

5. PikPak

Offering e-commerce businesses a variety of solutions for their warehousing, order fulfilment, and inventory management needs, PikPak is an all-inclusive 3PL supplier in Australia. 

The company allows e-commerce companies to focus on product manufacture and sales by assigning their logistical needs to an outside 3PL provider.

The warehouse services offered by PikPak offer safe and secure storage options for a wide range of products, including home goods, machinery, clothing, and medications. 

Additionally, they offer an easy-to-use dashboard that shows the status of orders in real time across a variety of channels, from placement to delivery.

What Customers Say:

– Flexible warehousing 

– Glitches within its platform

– Poor shipping timelines

– Delayed delivery 

6. Invenco

Ideally situated for container and LCL deliveries, Invenco’s state-of-the-art storage facility is situated in Moorebank, in Sydney’s West, right off the M5 and M7 highways. The company is an expert in providing cost reduction, growth, and automation solutions for e-commerce businesses, with a focus on e-commerce logistics.

What Customers Say:

– Tech-integration 

– Real-time order tracking

– Poor customer service

– Expensive 

7. Parca Logistics

Parca is an Australian 3PL fulfilment service that specialises in transporting large, bulky goods that don’t fit into typical packaging. Their wide selection of offerings is ideal for e-commerce companies who sell bulky, heavy goods like car parts, machinery or furniture. With over 40 years of experience in logistics, Parca has worked closely with large corporations, medium-sized businesses, and even a few startups. 

What Customers Say:

– Hassles with return process

– Inaccurate tracking software

– Poor customer service

– Inaccurate tracking details sent to the end customer

– Delayed shipping

8. Pack And Send 

Despite being founded in 1993, PACK & SEND has evolved for the digital era to offer a range of shipping technology solutions. These solutions work in unison with online retail and e-commerce platforms. Pack and Send can handle inventory, pick, pack, and ship products fast anywhere in the world thanks to their more than 100 service centres spread across Australia, the UK, and New Zealand.

What Customers Say:

– Good customer service 

– On-time delivery

– Damaged products while transporting

– Delayed return processing 

– Inconsistencies with order pick up

9. DTDC AU

With over 10,000 locations worldwide, DTDC is a forward-thinking courier business with a long history in import and export. It has pushed the limits of logistics to the absolute maximum. 

With DTDC, you can obtain precise and quick quotations for orders, saving time and energy.  Additionally, they offer an interactive shipping calculator and quote API to get the most out of your e-commerce efforts.

What Customers Say:

– Timely pick up and delivery

– Quick resolutions

– Delayed refunds and returns 

– Inconsistent refund policies

– Extra charges for cancellation 

– No clarity in order tracking

10. Yusen Logistics 

With more than 30 years of experience, Yusen Logistics is an Australian firm that specialises in third-party logistics, supply chain management, and logistics. Their eight strategically located locations throughout Australia provide them with access to 115,210 square metres of warehouse space. Supply chain solutions, warehouse and distribution, and international freight services are among the services offered by Yusen Logistics.

What Customers Say:

– Extensive infrastructure 

– Robust technology

– Expensive

– Poor customer service 

– Limited customisation in packaging

The Benefits of Outsourced Fulfilment

Partnering with a 3PL provider unlocks a multitude of benefits for your Australian e-commerce business:

1. Enhanced Order Management for faster order dispatch:

Gone are the days of juggling spreadsheets and manual order processing. 3PLs utilise sophisticated order management systems (OMS) that automate tasks like order picking, packing, and shipping. OMS also helps with pre out-bounding tasks such as inventory management, warehouse overview and inbounding. This frees up your time and resources to focus on strategic business activities like marketing and product development.

2. Streamlined Warehousing that’s budget friendly:

Finding and managing your own warehouse space can be costly and resource-intensive. 3PL providers offer strategically located warehouses across Australia, ensuring faster delivery times and minimising shipping costs for your customers. Additionally, they handle inventory management, ensuring optimal stock levels and preventing stockouts through real time alerts.

3. Inventory Forecasting for better resource allocation

To ensure a seamless fulfilment experience, third-party fulfilment companies use advanced inventory forecasting tools. This empowers customers to predict and update their expected inventory workflow 7 days in advance. This advanced notice allows our warehouse team to efficiently prepare for upcoming demand fluctuations, avoiding any Service Level Agreement (SLA) breaches.  

4. Reduced Costs that paves way for affordable fulfilment:

While there are associated costs with using a 3PL, they can often lead to overall cost savings. 3PLs leverage economies of scale to negotiate better rates with shipping carriers, warehousing providers, and packaging suppliers. Additionally, you eliminate the need for upfront investment of large capital for dented warehouse space, equipment, and labour.

5. Expertise and Technology to amplify business growth:

3PL providers are specialists in e-commerce fulfilment. They possess the knowledge, expertise, and technology to optimise your fulfilment processes, from inventory forecasting to shipping route optimisation. This ensures a smooth and efficient fulfilment experience for your customers.

6. Labour Cost Savings:

Managing in-house fulfilment requires a dedicated workforce for tasks like order picking, packing, and shipping. By outsourcing these tasks to a 3PL, you can significantly reduce your labour costs, freeing up resources to invest in other areas of your business.

7. Scalability and Flexibility to cater to rising demand:

As your business grows, your fulfilment needs will evolve.  Partnering with a 3PL provider ensures you have the infrastructure, resouce and the flexibility to scale your operations seamlessly. Whether you experience seasonal fluctuations in demand or launch new product lines, a 3PL can adapt their services to meet your changing needs.

How a business functions with and without a 3PL provider

Aspect	E-commerce with In-House Fulfilment	E-commerce with a 3PL Provider
Order Management	Manual order processing, potential for errors	Automated order processing with WMS, reduced errors
Warehousing	Requires finding and managing warehouse space	Access to strategically located warehouses, reduced costs
Scalability	Limited scalability as business grows	Flexible solutions to accommodate growth
Costs	Upfront investment in warehouse space & labour	Reduced costs through economies of scale and shared infrastructure
Expertise	Requires expertise in logistics	Access to expert knowledge and technology
Labor	Requires dedicated workforce for fulfilment tasks	Reduced labour costs through outsourcing
Customer Experience	Potential for delays due to manual processes	Improved customer experience through efficient fulfilment and timely deliveries

What Should You Look For While Choosing A 3PL Fulfilment Provider For Your Business?

1. Technology Integration and OMS Compatibility:

Seamless integration between your e-commerce platform and your 3PL’s Warehouse Management System (WMS) is crucial. Look for a 3PL that offers robust Order Management System (OMS) compatibility. This ensures real-time order visibility, automatic order fulfilment workflows, and accurate inventory management. A seamless integration minimises errors, reduces manual data entry, and ultimately enhances efficiency.

2. Multichannel Selling Expertise:

Do you sell across multiple online marketplaces like Amazon, eBay, Shopify, your own web store, or even brick-and-mortar locations?  Choose a 3PL provider experienced in multichannel fulfilment. They should be able to integrate with your various sales channels and ensure consistent inventory management and order fulfilment across all platforms. This creates a unified customer experience regardless of where the purchase is made.

3. Expiry Management:

For businesses selling products with expiration dates, a 3PL with a robust expiry management system is essential. This system ensures proper stock rotation, preventing expired products from reaching customers. Look for a 3PL that offers features like First-In, First-Out (FIFO) inventory management and alerts for products nearing their expiry date.

4. Batch Management:

When you offer subscription boxes or bundles that require pre-assembled components, batch management becomes crucial for efficient fulfilment.  A 3PL with strong batch management capabilities can streamline the process of picking, packing, and shipping pre-configured kits or bundled products, ensuring accurate order fulfilment and customer satisfaction.

5. Local Knowledge and Coverage:

Australia’s vast geography requires a nuanced understanding of regional logistics. Opt for a 3PL provider with a strong presence and established network within Australia. This ensures efficient delivery times across the country, minimises shipping costs, and caters to the specific needs of your target market. Consider factors like the number of strategically located warehouses and their proximity to your customer base.

Choosing The Right 3PL Fulfilment Service Provider For Australian E-commerce 

To ensure smooth functioning of your business, choosing a 3PL Fulfilment service provider that knows not just the local technicalities but also your requirements are crucial. Before you select a 3PL service provider, here are some key features to look out for:

Matching Your Needs:

The ideal 3PL isn’t a one-size-fits-all solution.  Consider your specific needs. Do you sell temperature-sensitive products requiring specialised storage?  Do you have a high volume of subscription boxes demanding efficient batch management?  Look for 3PL providers with expertise that aligns with your product type and fulfilment requirements.

Technology:

Seamless integration between your e-commerce platform and the 3PL’s Warehouse Management System (WMS) is paramount.  Look for a 3PL that offers robust Order Management System (OMS) compatibility. This ensures real-time order visibility, reduces errors, and streamlines your fulfilment process.

Locations:

Australia’s vastness demands strategic logistics. Choose a 3PL with a strong national presence and strategically located warehouses. This ensures fast and cost-effective deliveries across the country, keeping your customers happy.

Beyond the Basics:

While these initial considerations are crucial, don’t stop there. Explore value-added services offered by different 3PLs.  These could include returns processing, gift wrapping, or even kitting for subscription boxes.  These additional services can elevate your customer experience and give you a competitive edge.

Transparency:

Clear communication and access to real-time data are vital. Look for 3PLs that offer transparent reporting on inventory levels, order fulfilment status, and even performance metrics. This allows for proactive problem-solving and continuous improvement.

Conclusion

The Australian e-commerce landscape is an area filled with potential, and the right 3PL provider can be your secret weapon for success.

The ideal 3PL isn’t just a service provider, they’re a strategic partner in your e-commerce adventure.  So, equip yourself with the points mentioned in this guide and allow your business to be elevated into new horizons.  

With a strategic 3PL by your side, you can conquer fulfilment challenges, streamline operations, and ultimately achieve sustainable e-commerce growth.

Frequently Asked Questions